Why is Ripple’s XRP Plunging Nearly 40%?

Ripple’s XRP has lost almost 40% of its value after the token price dropped from $0.51 on December 21 to $0.31 at the time of writing. The token’s plunge appears to be the result of legal proceedings initiated against Ripple by the US Securities and Exchange Commission (SEC). At the time of writing, the fourth-ranked crypto token had seen traded volumes of $4.85 billion recorded in 24 hours.

$1.3 Billion Lawsuit

As data on markets.Bitcoin.com suggests, the sell-off of the XRP token appears to have been sparked by Ripple CEO Brad Garlinghouse’s warning that the SEC was about to launch legal proceedings against the company. A day later, the SEC announced the $1.3 billion legal action against Ripple and two of its executives for allegedly conducting an unregistered security offering.

XRP Token Plunges by Nearly 40% Following the Announcement of SEC Charges Against Ripple

Meanwhile, as the XRP token continues to plummet, an angry Garlinghouse has accused the US regulator of being biased against Ripple while appearing to give a free pass to BTC and ETH. In its determination, the SEC says the XRP is a security and therefore is subject to the dictates of the US Securities Act. Garlinghouse, who has previously threatened to exit the United States due to its regulatory approach, rejects the characterization of XRP as a security.

In his many very public attempts to push back against the SEC, Garlinghouse says the XRP token is a fully functional currency that offers a better alternative. He adds that alongside bitcoin and ether, “the two Chinese controlled virtual currencies” according to the company, XRP ranks as one of the most capitalized cryptos.

XRP Token Plunges by Nearly 40% Following the Announcement of SEC Charges Against Ripple

Crypto Community Reacts

However, the latter comment appears to have prompted a swift response by some bitcoiners and the ETH creator Vitalik Buterin. In his tweet, Buterin accuses Garlinghouse and his team of “sinking to new levels of strangeness.” The ETH creator adds:

They’re claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are ‘Chinese-controlled.’

Also weighing in on the controversy is Mike Novogratz, the CEO of Galaxy who says he “finds it strange that Clayton waited years to do this.”

XRP Token Plunges by Nearly 40% Following the Announcement of SEC Charges Against Ripple

On the other hand, Ryan Selkis thinks the SEC is going to lose this case because it is “outclassed on legal.” He adds that the classification of XRP as a security “further hurts the U.S. businesses while global companies will continue to make these markets.”

Meanwhile, at the time of writing reports emerged that the Hong Kong trading platform OSL had suspended XRP services as a result of the SEC lawsuit.

Do you think that the XRP token is going to bounce back? Tell us your views in the comments section below.

The post XRP Token Plunges Nearly 40% Following the Announcement of SEC Charges Against Ripple appeared first on Bitcoin News.

Source: Bitcoinnews.com

How Bitcoin Is The Solution To What One Billionaire Calls America’s Greatest Risk

Bitcoin has been trading over $20,000 for well over a week now, resulting in more mainstream media coverage, and a wider scope of coverage in the world of finance. It has caused investors, analysts, and billionaires of all kinds to be questioned on their thoughts about the trending cryptocurrency. Responses are a mix of wild speculation and healthy skepticism.

In an interview with the billionaire founder and chairman of Equity Group Investments, Sam Zell, he reveals what he believes to be the “single greatest threat” facing Americans in the future. In the same conversation, although he remains skeptical and put off by certain aspects of crypto, he admits that “ultimately, it may be the answer” to the problem he himself warns of.

Bitcoin: Why The Next Global Reserve Currency Should Be Crypto

Bitcoin and cryptocurrencies have been a polarizing subject in the world of finance ever since Satoshi Nakamoto released the code into the wild, setting the network in motion for the first time.

Since then, the asset has gone through various phases of adoption, starting as a dark web currency and proof of concept, and more recently, becoming a safe haven asset and store of value.

In its early days, cypherpunks, techies, and convicted criminals were the asset’s biggest supporters, while naysayers were aplenty. Over the years, the asset’s bubble and bust cycles attract new investors in waves and convince the critics of past cycles to turn believer.

This latest wave has begun for the first time to pique the curiosity, interest, and capital of corporations, hedge funds, and billionaire investors. What comes along with that crowd, is the cryptocurrency’s strongest arguments and criticism yet.

Already, some of the biggest names in finance have come out to say that the stock-to-flow model Bitcoin supporters subscribe to based on the asset’s digital scarcity, is flawed. Meanwhile, others claim that the cryptocurrency should be worth $400,000 already based on alternative models.

Bitcoin suddenly became interesting to this category of wealth in 2020, as these investors seek to protect that wealth from the US dollar’s expected weakness.

The dollar has taken a beating throughout 2020 due to excessive money printing and continued mismanagement of monetary policy. Fearing hyperinflation and little upside in other markets such as stocks, these high wealth individuals and institutions increasingly considered Bitcoin as a store of value, and the digital gold narrative took hold.

But not everyone is convinced just yet.

bitcoin dollar 99 percent

The dollar has fallen 99.99% against Bitcoin since its inception | Source: BTCUSD on TradingView.com

Billionaire Investor: Dethroned Dollar Is The “Single Greatest Risk,” Standard Of Living To Decrease By 25%

Sam Zell founder and chairman of Equity Group Investments, warns that if the dollar loses its “global reserve” status it could lead to “a 25% reduction in our standard of living,” referring to Americans as a whole.

“Unlimited debt and irresponsible activity don’t lead to positive outcomes,” the billionaire explained. “That’s a disastrous kind of scenario.”

Zell doesn’t come right out and say that Bitcoin is the solution, and starts off his thoughts on the cryptocurrency claiming “I am very skeptical, frankly.” But he does admit that “it may be the answer or one of the answers,” ultimately.

Bitcoin has been pitched as an ideal global reserve currency due to its non-sovereign traits and the fact it works counter to the “irresponsible activity” that Zell is referring to.

RELATED READING | THE MANY REASONS WHY THE DOLLAR COULD SOON PUT A DAMPER ON BITCOIN BULLISHNESS

Bitcoin’s hard capped supply solves the issues created by quantitative easing and was designed as an alternative to these failing fiat-based monetary systems. Everything about it is the solution to what Zell calls the “single greatest risk.”

What is holding Zell back from becoming a full Bitcoin believer, is due to the “chameleons and other fast-talking characters,” the crypto industry is “extraordinarily populated by.”

Zell says that most of the leading figures in the crypto industry are not “the kind of people I’d like to follow.”

The crypto industry is still young, and for every snake oil salesman, there is a Tyler or Cameron Winklevoss. And over time, the Authur Hayes of the industry that helped put a target on its back will be forgotten, and the legacy laid forward by the likes of Michael Saylor and other brilliant minds, will be what is remembered in the history books.

FEATURED IMAGE FROM DEPOSIT PHOTOS, CHARTS FROM TRADINGVIEW.COM

Source: Bitcoininst

Elon Musk Ponders Tesla Putting Billions Into Bitcoin, Asking if Such Large Transactions Are Possible

Tesla and Spacex CEO Elon Musk made a series of tweets about bitcoin on Sunday. One of them concerns whether it is possible to buy bitcoin in “large transactions,” particularly for Tesla to convert its U.S. dollar reserves into bitcoin. Microstrategy’s CEO told Musk that this move would be “a $100 billion favor” to Tesla’s shareholders that would grow into a “$1 trillion favor.”

Elon Musk’s Bitcoin Tweets

Elon Musk tweeted about bitcoin several times on Sunday, starting with “Bitcoin is my safe word,” making the same joke he previously made on several occasions. This time he followed up with “Just kidding, who needs a safe word anyway?” His initial tweet garnered over 6.1k comments at the time of writing. It had been retweeted more than 21.1k times and liked 210.1k times.

A few hours later, Musk tweeted about bitcoin and dogecoin. One tweet reads: “Bitcoin is almost as bs as fiat money,” which many commenters have taken as a welcome insult to government money, particularly the U.S. dollar. Another tweet says: “One word: Doge.”

Musk also replied to a bitcoin price prediction made by Twitter user Mark Calloway. “I predict a crash, I also predict it will reach $50k in [the] next five years,” he wrote. The Tesla CEO replied, “Sounds about right.”

Elon Musk Ponders Tesla Putting Billions Into Bitcoin, Asking if Such Large Transactions Are Possible

Musk then tweeted a bitcoin meme that attracted Microstrategy CEO Michael Saylor to comment a few hours later. Saylor has become an avid bitcoin proponent after making the cryptocurrency his billion-dollar company’s primary Treasury reserve asset.

The Microstrategy CEO told Musk: “If you want to do your shareholders a $100 billion favor, convert the $TSLA balance sheet from USD to BTC. Other firms on the S&P 500 would follow your lead & in time it would grow to become a $1 trillion favor.” Musk responded to Saylor:

Are such large transactions even possible?

Saylor answered: “Yes. I have purchased over $1.3 billion in BTC in past months & would be happy to share my playbook with you offline – from one rocket scientist to another.” A number of others chimed in to answer Musk’s question, including Binance CEO Changpeng Zhao, who recommended his own exchange to Musk. “Probably not a good idea to do it in one transaction, but can definitely be done,” he noted.

Musk’s bitcoin question has sparked much speculation on social media that the Spacex CEO might soon buy a large amount of bitcoin, possibly through his company Tesla. However, some people believe that Musk was not serious about buying bitcoin with Tesla’s money. Gold bug Peter Schiff, for example, opined: “It seems like Elon Musk was only joking about exposing Tesla shareholders to bitcoin. So I don’t need to convince the board not to turn Tesla into a double bubble.”

Tesla will officially become an S&P 500 constituent at Monday’s open with a 1.69% weighting in the index, which is the fifth-largest.

Prior to Sunday, Musk has tweeted about bitcoin on a number of occasions. The Tesla CEO confirmed in May, “I still only own 0.25 bitcoins,” after replying to Harry Potter author J.K. Rowling about how “massive currency issuance by govt central banks is making bitcoin internet money look solid by comparison.” The small amount of BTC Musk owns was given to him several years ago by a friend, he explained in February last year, noting that he did not have any other crypto holdings.

In February, he addressed the rising number of scams leveraging bitcoin and other cryptocurrencies. Many of them used his name to promote their bitcoin giveaway schemes, raking in millions of dollars. The concerned Musk tweeted: “The crypto scam level on Twitter is reaching new levels. This is not cool.” In November, he responded to Game of Thrones actress Maisie Williams asking on Twitter if she should buy bitcoin with “Toss a bitcoin to ur Witcher.”

Musk also tweeted about cryptocurrency several times last year last, such as “Whoever owns the early BTC deserves a Nobel prize in delayed gratification.” Besides bitcoin, the Tesla CEO has also tweeted about dogecoin a number of times over the years. To this day, his Twitter profile still displays: “Former CEO of Dogecoin.”

Do you think Elon Musk’s Tesla will soon invest substantially in bitcoin? Let us know in the comments section below.

The post Elon Musk Ponders Tesla Putting Billions Into Bitcoin, Asking if Such Large Transactions Are Possible appeared first on Bitcoin News.

Source: Bitcoinnews.com

Will bitcoin price hit $500,000?

Add another robust bitcoin (BTC-USD) price prediction to the mix from a crypto industry insider — $500,000.

“This year is probably going to end at this $22,000 to $25,000 range [for bitcoin] and next year $30,000 to $35,000 and then we will break out to these new high levels that you are talking about,” Celsius Network co-founder and CEO Alexi Mashinsky told Yahoo Finance Live when asked if bitcoin was on a collision course to reach $500,000. Celsius, a crypto loan company, tapped into the renewed bitcoin fever to raise $20 million via an equity crowdfunding in August to support its operations.

Mashinsky contends that the supply is so scarce for bitcoin — and demand so great — that up is the only likely direction for the crypto to head over time.

Judging by the action of late in bitcoin, other investors agree with Mashinsky’s thinking.

Bitcoin prices surged beyond the $20,000 mark this week and hit fresh record highs. On Thursday, prices crept to about $23,000. Year-to-date bitcoin prices are up about 224%.

The sizable year-end move in bitcoin is giving some investors in the space a flashback to the big run-up seen in 2017. Bitcoin prices surged to $17,000 by mid December 2017, only to plunge to $3,100 or so a year later as speculators were crushed under the weight of their own greed and a raft of unfriendly news.

But industry pros say this time is different because of newfound institutional demand for bitcoin. The buying, pros think, only supports the view of bitcoin as a credible alternative to fiat currencies.

This month, insurance giant MassMutal unveiled a $100 million investment in bitcoin for its general investment account. PayPal continues to buy up bitcoin to support the recent launch of the capability to buy, sell and trade cryptocurrency from a PayPal account.

“Bitcoin is for everyone,” longtime bitcoin bull Mike Novogratz told Yahoo Finance Live. “Everyone should put 2% to 3% of their net worth in bitcoin and look at…

Continue reading at YAHOO! FINANCE

 

Bitcoin Price Analysis: How High Can The Parabolic Move Go?

Bitcoin’s price has left everyone in shock today. Not only has the leading crypto broken the psychological $20,000 mark in the last 24 hours, but also the $21K, $22K, and $23K levels in rapid succession too.

Over $71 billion has entered the global crypto market during this historical movement, pushing the weekly increase in worldwide crypto investment up to $119 billion.

The dramatic surge in price has wiped out over 474 short positions on BitMEX worth a combined $131.4 million. This will have likely caused a majority of liquidated traders to buy back into BTC to recuperate losses, which in turn will have added to the already extremely high buying pressure.

On the hourly BTC/USD chart, we can see that the RSI indicator and price action are beginning to bearishly diverge (yellow lines) which suggests momentum is beginning to wane in the current uptrend. It doesn’t necessarily mean that a crash is coming, but it does suggest that bullish traders will need to recharge before attempting a new uptrend.

Price Levels to Watch in the Short-term

On the 1-Day BTC/USD chart, we can see that trading activity on December 16th closed pretty much perfectly at the 1.0 Fibonacci extension level at $21,339.

However, to see where the asset will likely go in the short-term we need to look at the Fibonacci retracement levels on the hourly timeframe to get a better idea.

From the lowest low of the current trend at $17,570 to the current all-time high, we can see that the 0.382 and 0.5 Fib levels ($21,405 and $20,673, respectively) stand out as strong possible support areas if Bitcoin begins to reverse. There is also an order block support zone (green bar) just under the 0.236 Fibonacci Level around $22,250 which may act as a key intraday level during the rest of today’s trading session.

Looking above, we will continue to look at major psychological levels as the next likely areas of resistance; $23,000, $24,000, $25,000, and so on.

Chances of a strong correction are likely, given that there is so much hype behind the asset right now. Once that greed turns to fear we’re almost certain to see Bitcoin prices tank as traders try to secure their new gains in more stable pegged-value assets.

Bitstamp BTC/USD Hourly Chart

bitcoin
BTC/USD chart via Tradingview

Bitstamp BTC/USD Weekly Chart

bitcoin usd
BTC/USD chart via Tradingview

Source: Crypto Potato

Bitcoin Sets New All-Time Highs

  • Bitcoin is officially trading at fresh all-time highs, with the crypto’s price racing as high as $20,800 this morning before losing some momentum and hovering just below this level
  • Where the crypto trends in the mid-term should depend largely on whether or not it can turn this momentum into another parabolic uptrend
  • One trader believes that this is a strong possibility, and could be induced by an imminent short-squeeze
  • The break above $20,000 has put virtually every bear in Bitcoin’s history underwater, with it now entering uncharted territory as the world sees its first $20,000+ Bitcoin
  • The coming few days should provide investors with some serious insights into where the entire market will trend in the days and weeks ahead

Bitcoin is officially trading at the highest prices it has ever seen, with its long-held bout of consolidation beneath $20,000, ultimately resulting in it seeing an explosive move higher.

Where the crypto trends in the mid-term should depend largely on whether or not it can sustain its current momentum, as it now needs to form support between its current price and the lower-$20,000 region.

The massive quantity of underwater short positions does seem to indicate that upside could be imminent in the days ahead as bears capitulate and close their underwater positions.

Bitcoin Enters New Epoch: Price Breaches $20,000

At the time of writing, Bitcoin is trading up just under 6% at its current price of $20,550. This is around where it has been trading throughout the past few hours, with the selling pressure seen in the upper-$20,000 region proving to be significant.

BTC rallied as high as $20,800 today before it found some resistance that slowed its ascent.

It is important to note that the break above $20,000 does appear to be resulting in a short-squeeze, leading to further upside.

Every BTC Bear is Now Underwater

Except for any bear who shorted $20,800, virtually every Bitcoin short-seller is currently underwater.

The massive quantity of short orders laced throughout the upper-$19,000 region are likely all being – or on the cusp of being – liquidated, which could create a squeeze that sends BTC rocketing higher.

“Everyone who has ever gone short in the entire history of bitcoin is now underwater. Congrats fellow bulls,” one trader noted.


The coming few days should shine a light on where the new support and resistance levels are established.

Source: Bitcoininst

How A Biden Administration Is Likely To Approach Bitcoin

One opening question for the new Biden Administration is how they might deal with cryptocurrencies. It’s not going to be an issue that is central to the administration directly, yet with the emergence of the digital yuan from geopolitical competitor China, and inflationary monetary policy meant to gear a recovery in employment rates, the questions on the economy, great power competition and digital rights around the world, central themes of bitcoin, will be immediate priorities.

A Biden Administration will have to weigh its policy tools and speeches carefully in an age of emerging “great power” conflict, protest movements around the world, and the economic stagnation that has come from the COVID-19 pandemic. The theme of bitcoin and cryptocurrencies is not just one of direct regulations and laws, but rather its outsize effect on international geopolitics, finance and political relations.

This article isn’t meant to be legal advice of any sort, but rather a walkthrough of the different issues, laws, and regulations an incoming Biden Administration may face with bitcoin and other cryptocurrencies.

The current state of bitcoin and federal policies

Currently, bitcoin is “directly” regulated at the federal level by the Office of the Comptroller of the Currency (OCC) with regards to its custody, and the US Commodity Futures Trading Commission (CFTC) under the Commodity Exchange Act (CEA).

There is an intersection with the IRS on tax policy, where transparency rules on disclosure and its classification as property means cryptocurrency holders have to pay federal capital gains tax.

Exchanges of cryptocurrencies and bitcoin may be subject to the Bank Secrecy Act and its registration/disclosure requirements. Cryptocurrencies and bitcoin are not insured by the Federal Deposit Insurance Corporation (FDIC).

Jay Clayton, the former chairman of the SEC affirmed that he determined that “bitcoin was not a security” so it did not fall under the SEC’s purview of regulation, unless people use crypto assets as securities to raise capital for a company or venture such as in the case of ICOs.

Biden nominees and advisors

A few Biden nominees and advisors have expressed opinions on bitcoin. They might be a reflection of his approach to decentralization and cryptocurrencies.

Perhaps the most important of these is Janet Yellen, Biden’s nominee to head the Treasury Department. She was the former chair of Economic Advisors during the Clinton Administration, and the chairwoman of the Federal Reserve System. She has said that…

Continue reading at FORBES.com

 

 

3 Cryptocurrencies That Ran Circles Around Bitcoin in 2020

It’s been an exceptionally volatile year for equities due to the unprecedented uncertainty created by the coronavirus pandemic. Nevertheless, it’ll probably go down as a largely positive year for investors. After losing more than a third of its value during the first quarter, the benchmark S&P 500 is now on track to deliver gains of more than 14% for the year.

But most equities can’t hold a candle to what cryptocurrencies have done in 2020. After beginning the year with an aggregate digital-currency market cap of $191.5 billion, the combined valued of more than 7,900 cryptocurrencies as of Dec. 9 topped $551 billion. This 188% year-to-date gain in total market value has been largely fueled by bitcoin.

Having recently eclipsed a new all-time closing high, the world’s largest digital token by market cap is up approximately 153% on a year-to-date basis. Bitcoin has benefited from multiyear lows in the U.S. dollar (some investors view bitcoin as an intriguing store of value) as well as an aversion to cash during the pandemic. We were already witnessing a shift toward cashless payments prior to COVID-19. The pandemic has merely accelerated this ongoing trend.

Yet, a broader look at the crypto space shows that a number of popular digital currencies ran circles around bitcoin in 2020, based on year-to-date performance.

NEM: Up 535%

Among the largest and most popular digital tokens, NEM’s XEM token has been one of the top performers. Its 535% year-to-date gain more than triples up what bitcoin has delivered for its investors in 2020.

What sets NEM apart from other cryptocurrencies is its Smart Asset System, which allows its blockchain technology to be easily customized to meet a business’ needs. For example, swapping out traditional payment platforms for blockchain will likely be time-consuming, costly, and burdensome. NEM’s architecture helps to resolve this problem by allowing its blockchain to be open and decentralized or permissioned and private, depending on what a business desires.

NEM’s Smart Asset System can also be used as an authentication service with cryptographic signatures. This is a fancy of way of saying that actions can be permissioned ahead of time to empower Internet of Things (IoT) devices to operate at peak efficiency.

NEM has announced numerous partnerships over the past couple of years. But none has garnered more buzz than its partnership with StakeHound, which culminated in the launch of stakedXEM in the decentralized finance ecosystem on Ethereum on Monday, Dec. 7.

Ethereum: Up 321%

Speaking of Ethereum, the Ether token has more than doubled up bitcoin’s gain in 2020. But unlike bitcoin, which is valued for its transactional appeal, the optimism surrounding Ether has everything to do with…

Continue reading at THE MOTLEY FOOL

 

Bitcoin price correction continues, dashing hopes of $20K in 2020

Bitcoin (BTC) continues to be in correction mode with BTC price dropping below $17,600 on Dec. 11, the lowest level since November.

Bitcoin in a downtrend on lower timeframes

Every beautiful rally comes to an end and gets followed by a corrective period. This correction seems to have started with the price currently down more than 10% since touching a new all-time high ten days ago.

Meanwhile, some recent news namely the proposed crypto regulation in the United States is bringing fear to the otherwise euphoric market. However, other markets have also suffered this week with equities also cooling off.

BTC/USD 4-hour chart. Source: TradingView

The 4-hour chart is implying a clear downtrend. Such a downward trend is confirmed by lower highs and lower lows, as shown in the chart.

First, Bitcoin’s price couldn’t break through the all-time high region, after which $18,500-18,700 acted as a strong support area for a week.

Every bounce from this region (as the arrows show) marked a weaker bounce, as lower highs were constantly formed. After three tests, the support failed, and Bitcoin’s price fell through to the next support level between $17,600-17,800.

This support zone initiated a slight bounce to $18,500-18,700. To become bullish, this zone had to flip for support, which it failed to do. This rejection confirmed the bearish support/resistance flip, after which the downtrend resumed.

Overall, the downtrend will post lower highs and lower lows always until a clear bottom is found. It doesn’t seem like the market will discover it shortly, however, as higher timeframes are also eager to turn south.

Bearish divergence on the daily timeframe getting confirmed

BTC/USD 1-day chart. Source: TradingView

The daily chart indicates a potential bearish divergence ready to be played out. This bearish divergence will be confirmed when the price of Bitcoin falls to break through $18,600-18,800.

In that sense, a previous resistance becomes resistance again, confirming the…

Continue reading at COINTELEGRAPH.com

 

 

3 Reasons Why Bitcoin Price Could Fall to $14,000

Bitcoin fell drastically this week, paring some of its December gains and maintaining its stretch of volatility on profit-taking sentiment among daytraders.

Most actively traded bitcoin derivatives plunged by an average of 13 percent to $17,705 from their all-time highs established last week. Meanwhile, the flagship cryptocurrency’s spot rate is still up 70 percent in the fourth quarter, signifying that its latest move downhill could be an organic bearish correction.

Bitcoin Futures on CME plunge lower. Source: BTC1! on TradingView.com

Investors tend to buy Bitcoin when they are fearful of the global economy’s outlook. This trend boosted the cryptocurrency’s demand earlier this year after the US Federal Reserve’s cheaper lending and unlimited bond-buying facilities reduced the appeal of the traditional safe-havens like the US dollar and the Treasury.

Nevertheless, a confluence of at least three fundamental indicators and technical fractals suggests that Bitcoin’s price may continue to head lower in the coming sessions.

#1 The 20-WMA Magnet

The 20-day exponential moving average serves as a short-term bias indicator for Bitcoin traders. If the cryptocurrency’s price holds the wave as its support, its likelihood of trending upward becomes high. Nevertheless, slipping below it extends the downside move a majority of times.

Since November 26, Bitcoin has tested the 20-DMA at least four times for a breakdown move. But it also met resistance from bulls, which led to solid rebounds — one of them even leading to the new all-time high near $20,000. Therefore, the cryptocurrency has the potential of paring its recent losses if it manages to float above the 20-DMA level.

But Bitcoin’s weekly chart provides a more downside outlook.

Bitcoin habitually retests its 20-weekly moving average after every upside rally. Source: BTCUSD on TradingView.com

Behind the short-term downbeat bias is a fractal. Bitcoin tends to revisit its 20-weekly moving average (20-WMA) after each of its uptrends. In certain cases, the downside correction turns into a full-fledged bearish move. But in others, the price treats the 20-WMA support as a floor to attempt another bullish move.

More or less, Bitcoin tests the 20-WMA wave, which means it may fall towards it in the coming sessions. The wave sits near $14,000.

#2 Bitcoin Miners Capitulation

The prospects of price hitting $14,000 increase also because of Bitcoin’s on-chain fundamentals. Ki-Young Ju, the chief executive of CryptoQuant — a data analytics platform, noted that miners — who provide security and confirm Bitcoin transactions — are selling their rewards en masse.

Some of their BTCs are ending up on exchanges. In contrast, others are getting deposited in cold wallets. Mr. Ju noted that an increase in exchanges’ Bitcoin inflows could prove bearish for the cryptocurrency in the short-term.

“The total outflow is not that big, but it’s relatively increasing compared to past days. Also, the number of outflow [transactions] is unusually high today. The miner-to-exchange flow seems small for now, so I stick to my long. I hope those outflows are [over-the-counter] deals.”

#3 US Regulation

The technical price target of $14,000 looks attainable because of the rumors of strict Bitcoin regulations in the US. On Thursday, US Congressman Warren Davidson penned a letter to Treasury Secretary Steven Mnuchin to provide details regarding any proposal that may [allegedly] impose restrictions on the use of private wallets.

If Mr. Mnuchin goes ahead with his [alleged] plans, it may prompt panic-selling in the Bitcoin market.

Source: Bitcoininst